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‘RACERS’ CLOSES:
UNION STATION SPACE READY FOR NEW TENANT
Racer’s Inc. to vacate 68,000 square feet.
By Anthony Schoettle, IBJ Reporter

For a short time, leasing representatives for Union Station has been enjoying its status as a near-capacity landmark. Now, unless one of (the) historic landmark’s biggest tenants can find a suitable company to take over its lease, they’ll have more work to do.

Racer’s Inc., which operated a high-end go-karting facility at the 68,000-square foot site of the former food court on the second floor of Union Station, abruptly killed its engine August 12, citing inadequate revenue to cover expenses.

Bob Jacobi, owner and president of locally based Racer’s, said he hopes to sell the operation by the time Formula 1 fans roll into town in September. Racers has 3-1/2 years left on a five-year lease with the city, which operates Union Station.

City officials said Racers owes about $500,000 in back rent. Jacobi said his company was behind on rent, but said the city’s figure was too high.

“We just didn’t have enough business for our expenses,” Jacobi said. “We took so long to get open, we couldn’t get established in good economic times. Some months were OK, but this summer was way off. At some point, you just have to say, ‘Gee, when do you stop investing and bring someone else in?’”

City officials pointed out that even if Racers does sell, the transfer of the lease would have to be approved by the city.

“We do want an entity there that will be active and benefit the area,” said Angie Dye, spokesperson for the city’s Department of Metropolitan Development. “We’ve already has people express an interest in that site. There’s a lot of activity at Union Station, and the site was 95-percent occupied before Racers closed, so we’re very optimistic.”

City officials have been contacted by parties interested in leasing the entire Racers space, but Dye said dividing the area is also possible.

Racers opened in February 2001, after a long debate between city officials and other Union Station tenants about possible noise and emission problems.

Jacobi said noise and emissions were never as issue while Racers was in operation.

Jacobi thinks Racers could be a financial success with some savvy marketing and an economic upturn. He also cited flagging convention traffic in Indianapolis as a problem.

Racers initially sought to draw corporate team-building events and convention-goers to their upscale karting facility, complete with 35 late-model karts, a European-style road course, computerized timing and scoring and other amenities. The facility also is equipped with a kitchen and banquet areas for parties and corporate events.

“This has been a very good business in Europe for some time,” Jacobi said. “This business here just needs someone who can do what it takes to get the critical mass of customers.”

Racers officials aid, when they started the operation, that the investment neared seven figures.

Now, Jacobi said he hopes to recoup most of that through a sale. He said he has already contacted other area and regional karting operators to see if there are any interested buyers. He said he also will contact other avid racers and people in related businesses.

Racers tried a number of ploys to lure customers, including parading a demo kart around town and offering a variety of lunches, including a pizza buffet to attract corporate types. Nothing worked well enough and walk-up business also was spotty, Jacobi said. Despite his experience, Jacobi said he’s still convinced karting at Union Station can be a winner.

“If somebody looks at the financials of this, I think they’ll find, yes, you can make this a viable operation,” said Jacobi, who is also president of Indianapolis-based Keller-Rivest, an engineering firm. “All the costs are fixed and that’s good if business is good. This remains a great location. As word goes out, I think there are a lot people who will be interested.”

Reprinted by permission
© 2002 Indianapolis Business Journal/IBJ Corp.

END

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